On July 26, Bearish breakdown below 1.2385 (Wedge-Pattern Key-Level) facilitated further bearish decline towards 1.2210 and 1.2100 which corresponded to significant key-levels on the Weekly chart.
In Early August, another consolidation-range was temporarily established between the price levels of (1.2100 - 1.2220) except on August 9 when temporary bearish decline below 1.2100 was executed towards 1.2025 (Previous Weekly-Bottom).
Since then, the GBP/USD pair has been trending-up within the depicted bullish channel except on September 3 when a temporary bearish breakout was demonstrated towards 1.1960.
Around the price level of 1.1960, aggressive signs of bullish recovery (Bullish Engulfing candlesticks) brought the GBPUSD back above 1.2230 where the pair looked overbought.
However, further bullish momentum was demonstrated towards 1.2320 maintaining the bullish movement inside the depicted movement channel.
As Expected, Temporary bullish advancement was demonstrated towards 1.2500 where the upper limit of the current movement channel has been applying considerable bearish rejection since September 13.
Last week, recent bullish trials were expressed towards 1.2500 - 1.2550 where bearish rejection and a reversal wedge pattern was established there.
The Long-term outlook remains bearish as long as the upper limit of the current movement channel around 1.2500 - 1.2550 remains defended by the GBP/USD bears.
Earlier this week, a reversal wedge pattern has been established around the mentioned Supply Levels (1.2500 - 1.2550) which was confirmed by the end of Yesterday's consolidations.
Today, the backside of the confirmed reversal wedge is being re-tested where a new episode of bearish rejection is anticipated.
Moreover, Bearish persistence below 1.2440-1.2400 (Reversal-Pattern Neckline) is needed to turn the short-term outlook into bearish, thus allowing more bearish decline to occur towards the lower limit of the movement channel around 1.2330.
Trade Recommendations:
Conservative traders can look for a valid SELL entry around the current price levels of 1.2480-1.2550.
T/P level to be placed around 1.2330, 1.2280 and 1.2220 while S/L should be set as a H4 candlestick closure above 1.2550.
